Most of the adult residents of Ha’apai are completely cut off from Tonga’s financial system, according to a Reserve Bank report.
The figure emerged during a national survey of how people in the kingdom’s financial system work.
Run by the Reserve Bank and the Pacific Financial Inclusion Program, the Financial Services Demand Side Survey showed that just over a third of Tongan adults are completely cut off from the financial system.
Alongside Ha’apai residents, those most likely to be excluded from the financial system included low income and casual income earners.
The survey’s other major findings were that fewer than half of Tongan adults had a bank account.
It found that 14% of those surveyed only had access to limited services through savings clubs, shop credit, moneylenders, or hire purchases.
Nearly three quarters of those surveyed said they received remittances in the previous 12 months.
Most Tongan adults, with the exception of public servants, are paid in cash and shop and pay bills in cash.
Nearly two thirds of adults said they saved towards everyday expenses and social obligations, rather than for long term goals.
Fiji, Solomon Islands, Samoa and Vanuatu have already conducted similar surveys.
The Tongan report put the kingdom on a par with other Pacific nations, particularly Samoa.
The main points
- Most of the adult residents of Ha’apai are completely cut off from Tonga’s financial system, according to a Reserve Bank report.
- The figure emerged during a national survey of how people in the kingdom’s financial system.
- The report showed that just over a third of Tongan adults were completely cut off from the financial system.
- Alongside Ha’apai residents, those most likely to be excluded from the financial system included low income and casual income earners.
